Key Takeaways
- • Eli Lilly is handing management of its $25 billion U.S. and Puerto Rican retirement portfolio, covering both defined benefit and defined contribution plans, to Goldman Sachs, according to Institutional Investor.
- • The mandate follows the August retirement of longtime CIO Susan Ridlen, who led the in-house team for roughly two decades, and marks a shift from an in-house model to an outsourced CIO (OCIO) structure.
- • Goldman Sachs will use its multi-asset solutions team to manage public and private assets on a holistic basis, with the transition expected to be completed by the end of 2025.
- • The win is Goldman's fourth-largest corporate pension mandate, behind UPS ($43.4 billion), Shell ($40 billion in European international pension assets) and BAE Systems ($28.2 billion).
- • The move reflects consolidation in the OCIO market, where large-scale providers hold 61% of global OCIO assets, up from 49% in 2017.
Summary
Eli Lilly and Co. is transferring management of its $25 billion portfolio of U.S. and Puerto Rican retirement assets to Goldman Sachs, according to Institutional Investor. The mandate covers both defined benefit and defined contribution plans and will draw on Goldman's multi-asset solutions team to provide holistic portfolio management across public and private assets. The transition is expected to be completed by the end of 2025.
The decision follows the retirement of Susan Ridlen, who announced her departure in August after 34 years with the company. Ridlen had run the retirement portfolio for roughly two decades and built a reputation as a maverick in corporate pension management. Under her leadership, the fund took an endowment-like approach, with roughly half of its assets in alternatives, including a hedge fund portfolio that consistently delivered alpha. Her lean team of a handful of professionals in Indianapolis reportedly outperformed benchmarks and saved the company hundreds of millions of dollars annually. Ridlen received Institutional Investor's Lifetime Achievement Award in 2023.
The mandate is a significant win for Goldman Sachs, which manages nearly $450 billion in OCIO assets. It is the firm's fourth-largest corporate pension win, behind UPS's $43.4 billion pension portfolio, Shell's $40 billion in international pension assets in Europe, and BAE Systems' $28.2 billion pension portfolio. According to Institutional Investor, the choice suggests Lilly's fiduciaries preferred the scale and infrastructure of a major institution over rebuilding an internal team of similar ambition.
The deal also reflects broader industry trends. Per Cerulli data cited in the article, U.S. OCIO assets reached $2.9 trillion at the end of 2023 and are projected to hit $4.2 trillion by 2028. Large-scale providers now command 61% of global OCIO assets, compared with 49% in 2017, as consolidation narrows the field of providers.
The decision follows the retirement of Susan Ridlen, who announced her departure in August after 34 years with the company. Ridlen had run the retirement portfolio for roughly two decades and built a reputation as a maverick in corporate pension management. Under her leadership, the fund took an endowment-like approach, with roughly half of its assets in alternatives, including a hedge fund portfolio that consistently delivered alpha. Her lean team of a handful of professionals in Indianapolis reportedly outperformed benchmarks and saved the company hundreds of millions of dollars annually. Ridlen received Institutional Investor's Lifetime Achievement Award in 2023.
The mandate is a significant win for Goldman Sachs, which manages nearly $450 billion in OCIO assets. It is the firm's fourth-largest corporate pension win, behind UPS's $43.4 billion pension portfolio, Shell's $40 billion in international pension assets in Europe, and BAE Systems' $28.2 billion pension portfolio. According to Institutional Investor, the choice suggests Lilly's fiduciaries preferred the scale and infrastructure of a major institution over rebuilding an internal team of similar ambition.
The deal also reflects broader industry trends. Per Cerulli data cited in the article, U.S. OCIO assets reached $2.9 trillion at the end of 2023 and are projected to hit $4.2 trillion by 2028. Large-scale providers now command 61% of global OCIO assets, compared with 49% in 2017, as consolidation narrows the field of providers.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.